You Would Need to Earn Nearly $114K to Afford Average Home in Las Vegas, Report Says
LAS VEGAS, NV – According to a new study from Clever Real Estate based on data obtained from the U.S. Census Bureau and the U.S. Bureau of Economic Analysis, the Las Vegas Valley now ranks as the 27th most affordable major metropolitan area in the United States when home prices and annual income are directly compared.
Based on this study, how much would the average Southern Nevada household need to be pulling in each year to afford a home?
Currently, the median price of an existing single-family home in the valley is $449,000, whereas the median annual household income is $75,065. So, as per the data contained in Clever Real Estate’s report, a household would need to be earning an annual income of $113,839 to afford the purchase of an average home with a down payment of 20 percent.
However, if you’re planning on buying a house in the valley with no money down, that yearly income requirement obviously needs to be higher; in this instance, it would have to go up to at least $138,826.
Henderson Re/Max Advantage associate Robert Little noted that the housing market in the valley, while improving for buyers, is still driving some low-earners out of the equation for the time being.
Affordability remains a real concern in the Las Vegas housing market, especially with today’s higher mortgage rate,” he said. “That said, we’ve seen a softening in prices this year, and the market has shifted slightly in favor of buyers, which offers some relief.”
Little said that despite greater and greater amounts of inventory opening up in Las Vegas, home prices are still lingering at nearly record-high levels. But despite that, he explained, there are signs that things are indeed changing.
Depending on how a home is priced relative to the competition, it’s not unusual for buyers to negotiate a price reduction, have closing costs covered by the seller, or use concessions to buy down their mortgage rate,” he said. “Builders are also stepping up with aggressive incentives—often covering all closing costs or offering significant rate buy-downs to attract buyers.”
Shelter Realty Property Management specializes in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.
Christopher Boyle is an expert investigative journalist for SEARCHEN NETWORKS® and reports for independent news and media organizations in the United States. Christopher keeps a keen-eye on what’s happening in the Vegas real estate market on behalf of Shelter Realty Property Management